If you can enter the messages into the dispute, do that now.

I was hoping he'd close it on his end, I just checked what info I'm allowed to enter if I challenge it, and it's asking why I'm challenging the dispute with a comment box, and also asking for: delivery confirmation, proof showing the item was sent to the buyer's address, proof showing attempt to resolve the buyer's issues with the item, any other relevant information.

I'm wondering if he can even close the dispute on his end through eBay since it's saying he "filed a payment dispute with his payment institution directly". Maybe he would have to go through his bank?

I'll gather some info before I challenge it.

He has to go to his payment institution to close it.  Ebay can't do anything their end.

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@welshjester wrote:

I'm wondering if he can even close the dispute on his end through eBay since it's saying he "filed a payment dispute with his payment institution directly". Maybe he would have to go through his bank?

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He won't be able to close it through eBay.  He would need to ask his payment provider to do so.  If it is a Chargeback with his bank/card issuer then it may not be possible.

First, whatever you may think, DO NOT roll over and give in to the dispute.

If you do that, it's a guaranteed refund.

So you challenge it.  After all, the worst that can happen is that you end up in same situation. ie refund.

You already have an email from the customer stating that it is now working.
You can attach this to the dispute.  If I remember correctly, you can add files in your defence.

State the procedure that you have followed, when sending the item, along with POD.

Give a brief summary of what has happened and what you have done to fix it.
Say that the buyer has not followed proper procedure, in opening a return in order to give a refund.
And if you can think of anything else that is relevant, add it to the case.

And yes of course the buyer can close a dispute.  He just contact his bank and tells them all is ok now.

I challenged it a couple of days ago, provided his messages along with proof of postage and delivery.

Now I have to wait and see what happens.

I'm very pleased to hear that. Thank you for taking the trouble to come back and report the result, it helps the people who give advice on this board.